Next Level Businesshttp://www.nextlevelbusiness.co.uk
Tue, 24 Apr 2018 18:36:21 +0000en-UShourly1122718880Dragons Den – Behind The Scenes With Dock & Bayhttp://www.nextlevelbusiness.co.uk/blog/dragons-den-behind-the-scenes-with-dock-and-bay/
http://www.nextlevelbusiness.co.uk/blog/dragons-den-behind-the-scenes-with-dock-and-bay/#respondFri, 08 Sep 2017 08:41:58 +0000http://www.nextlevelbusiness.co.uk/?p=1716So when your client calls you to say they just got accepted on the BBC series Dragons Den and need your help to prepare I paused for thought about the prospect of a client discussing their numbers on national television in front of an audience of millions. Yikes! Co-Founders Andy & Ben @ Dock & Bay (www.dockandbay.com) have reinvented the towel market and featured in Episode 4 of Series 15 of the program. We were fortunate enough to sit with Co-Founder Andy Jefferies who gave us an exclusive before and after interview, taking a look at what they did to

]]>So when your client calls you to say they just got accepted on the BBC series Dragons Den and need your help to prepare I paused for thought about the prospect of a client discussing their numbers on national television in front of an audience of millions. Yikes!

Co-Founders Andy & Ben @ Dock & Bay (www.dockandbay.com) have reinvented the towel market and featured in Episode 4 of Series 15 of the program.

We were fortunate enough to sit with Co-Founder Andy Jefferies who gave us an exclusive before and after interview, taking a look at what they did to prepare for this once in a lifetime opportunity.

Did they go into the Den and get eaten alive, or did they go in with a strategy and come out having tamed the dragons? Find out below.

PART 1: Preparing For Battle

Join me and Andy, one of the founders of Dock & Bay, to see the behind the scenes thoughts on what it was like to apply, how the process went and what we did to help them prepare.

PART 2: Behind The Scenes With Dock & Bay Post Dragons Den

Now that the battle has finished, we sit back down with Andy Jefferies, Co-Founder of Dock & Bay, to relive the Dragons Den experience. Watch our exclusive interview to see what they did well, what they plan to do now, and what they would advise to others on the entrepreneur journey.

]]>http://www.nextlevelbusiness.co.uk/blog/dragons-den-behind-the-scenes-with-dock-and-bay/feed/01716Flat Rate VAT Changes – From April 2017http://www.nextlevelbusiness.co.uk/blog/flat-rate-vat-changes-april-2017/
http://www.nextlevelbusiness.co.uk/blog/flat-rate-vat-changes-april-2017/#respondWed, 22 Mar 2017 16:19:37 +0000http://www.nextlevelbusiness.co.uk/?p=1447The government have changed the VAT rules for those on the flat rate scheme and it is likely a lot of businesses will reduce the amount of VAT the were previously keeping. It is badly thought out, complicated but we are here to help and you have options. Read on for more information. The Flat Rate VAT Change 2017 From April 2017 HMRC have introduced a new category of a ‘limited cost trader’ with a flat rate scheme percentage of 16.5%. Usually you will be under and a typical contractor would be 14% for example. Tell me….What is a limited

]]>The government have changed the VAT rules for those on the flat rate scheme and it is likely a lot of businesses will reduce the amount of VAT the were previously keeping. It is badly thought out, complicated but we are here to help and you have options. Read on for more information.

The Flat Rate VAT Change 2017

From April 2017 HMRC have introduced a new category of a ‘limited cost trader’ with a flat rate scheme percentage of 16.5%. Usually you will be under and a typical contractor would be 14% for example.

Tell me….What is a limited cost trader is?

A business that has VAT inclusive expenditure on ‘relevant’ good is either:

Less than 2% of your VAT flat rate turnover

Greater than 2% as above but less than £1,000 per year or the relevant proportion (£250) if quarterly return

Each VAT return needs to be checked against these new rules. HMRC have helpfully give us an online tool to check HERE

Now tell me…What is a relevant good?

Well HMRC again have drawn up a nice list for us HERE but for most of our clients relevant examples will only be stationary, office supplies and software on a disc. Why disc you say? We don’t know, it makes no sense!

In summary, relevant goods are used exclusively for the purpose of the business but don’t include:

vehicle costs including fuel, unless you’re operating in the transport sector and using your own and/or a leased vehicle

food or drink for you and/or your staff

capital expenditure goods of any value

goods for resale, leasing, letting or hiring out (if your main business activity does not ordinarily consist of the same)

goods that you intend to re-sell or hire out (unless selling or hiring out such goods is your main business)

any services

Below are examples of relevant goods (not a complete list):

stationery and other office supplies used by the business

electricity and gas used by the business

fuel for a taxi owned by a taxi firm

stock for a shop

cleaning products used by the business

standard software, provided on a disc

Examples of items that are NOT relevant goods:

bespoke software designed for you (service)

downloaded software (service)

rent (service)

laptop or mobile phone used by the business (capital expenditure)

food and drink (excluded good)

accountancy fees (service)

advertising costs (service)

I am confused…can you give me a worked case?

Let’s consider a limited company contractor with income of £80,000 per year before VAT who is classed under the new limited cost trader category.

£80,000 + VAT of £16,000 (20%) = £96,000 invoiced to clients

Flat rate scheme calculation 16.5% x £96,000 = £15,840

So, of the £16,000 of VAT you have charged to your clients, you have to pay £15,840 of this to HMRC, leaving only £160 VAT gained.

This means that if you were on the standard scheme instead you would only need to claim back £161 of VAT on your costs over the year to be better off.

The 16.5% figure confuses many people as they assume this is compared against 20%, so the gain is 3.5%. This is not the case, the 16.5% is applied to total income including VAT, so the effective comparison of the new flat rate limited cost trader category for most people is 19.8% vs 20.0%, so only 0.2% gain.

What are my options then?

Well, panic not. We recommend dealing with the first VAT return to see what shakes out for you once we do the calculation and checks. That aside your options would look like:

Stick – stay on the scheme and accept the lower gain, especially if you are in the first year of registration and getting the 1% discount which will still apply

Twist – move to the standard VAT scheme if you are likely to reclaim more VAT than the new gain would be accepting the increased admin or cost to do this type of return

Quit – if you are below the VAT deregistration threshold of £81,000 you could stop being VAT registered altogether, likely a smart choice if there is not any gain from a stick or twist approach so take the simple option

Get In Touch

If you’re not sure how these changes affect you and your business, get in touch and we can help you determine the best course of action.

]]>http://www.nextlevelbusiness.co.uk/blog/flat-rate-vat-changes-april-2017/feed/01447Spring Budget 2017 – A light touch…http://www.nextlevelbusiness.co.uk/blog/spring-budget-2017-a-light-touch/
http://www.nextlevelbusiness.co.uk/blog/spring-budget-2017-a-light-touch/#respondWed, 08 Mar 2017 17:32:08 +0000http://www.nextlevelbusiness.co.uk/?p=1404This is the 2nd budget (and the 1st Spring budget) by Phillip Hammond. It is a relatively light touch affair reflecting the fact the Autumn Budget will take precedence going forwards. How is UK PLC doing? Well, the good news is that 2017 growth has been revised up from the previous autumn statement of 1.4% to now 2%. The not so good news is that 2018/19/20 has been revised down a touch, no doubt as a result of the uncertainties that lie ahead with regard to Brexit. Flash Summary for Business We are still going digital! Most businesses will need

]]>This is the 2nd budget (and the 1st Spring budget) by Phillip Hammond. It is a relatively light touch affair reflecting the fact the Autumn Budget will take precedence going forwards.

How is UK PLC doing?

Well, the good news is that 2017 growth has been revised up from the previous autumn statement of 1.4% to now 2%. The not so good news is that 2018/19/20 has been revised down a touch, no doubt as a result of the uncertainties that lie ahead with regard to Brexit.

Flash Summary for Business

We are still going digital! Most businesses will need to keep digital records and submit quarterly updates by 2018.

Next Level Business clients are already digital and well positioned for this ‘making tax digital’ transformation so we will be focusing on advising you and making the most of your business whilst others run around trying to catch up.

For everyone else, talk to your accountant now.

Positives

Lower Corporation Tax – reconfirmed in the Spring Budget, from 20% to 19% starting 1 April 2017, 17% starting 1 April 2020. As low as 10% from 1 April 2017 for profits derived from patents.

Increase in Personal Allowance – reconfirmed in the Spring Budget for owner managers, this useful increase from £11k this year to £11,500 from April 2017 and £12,500 by 2020 helps along with the increase in the higher rate threshold from £43,000 to £45,000 from April 2017 and £50,000 by 2020.

Business Rate Support – limits on the increase in business rates and a £300m fund to help businesses transition.

Negatives

Dividend Allowance – along with the changes to dividend tax in April 2016 where a £5,000 nil band for dividends was introduced alongside a 7.5% basic rate dividend tax rate this dividend allowance has now been cut to £2,000 from April 2018. It means more dividends in the 7.5% band, costing owner directors £225 more in tax each year.

Increase in Employers National Insurance – Class 4 NI paid by high-earning self-employed (sole traders) will increase from 1% to 10% in April 2018 and 11% in April 2019. This does not impact those trading through a Ltd company. Although this equates to only 60p for every self-employed person per week the higher earners will see a dramatic tax increase possibly running into thousands.

National Living Wage – this will increase to £7.50 from April 2017 from the £7.20 only recently introduced in October 2016, making it a little more costly to employ people to the tune of £624 per year for a standard 40 hour week.

What next…..

More detail will unfold in due course and our mobile app will get updated with the latest news, rates and calculators over the coming days for those who like to punch in the figures and see the impact.

We still think the Limited company status and benefits remain strong for small businesses of all shapes and sizes if well setup. It is now more important than ever to plan. Contact us if you want to have a review or tax planning session.

]]>http://www.nextlevelbusiness.co.uk/blog/spring-budget-2017-a-light-touch/feed/01404Auto-Enrolment for Small Business: What you need to knowhttp://www.nextlevelbusiness.co.uk/blog/auto-enrolment-for-small-business-what-you-need-to-know/
http://www.nextlevelbusiness.co.uk/blog/auto-enrolment-for-small-business-what-you-need-to-know/#respondWed, 11 Jan 2017 07:56:10 +0000http://www.nextlevelbusiness.co.uk/?p=1266If you run a small business and have been contemplating whether or not to implement a workplace pension for your staff, the time for thinking is almost up. Back in 2012, a law commonly referred to as pension auto-enrolment came into effect. This new law obligated employers to put in place a qualifying workplace pension scheme which their staff would be automatically enrolled in; until recently auto-enrolment only applied to large businesses, but it’s now become a concern for SMEs and failure to comply could result in some nasty fines. We’ll get to that in a moment, but first, let’s

]]>If you run a small business and have been contemplating whether or not to implement a workplace pension for your staff, the time for thinking is almost up. Back in 2012, a law commonly referred to as pension auto-enrolment came into effect. This new law obligated employers to put in place a qualifying workplace pension scheme which their staff would be automatically enrolled in; until recently auto-enrolment only applied to large businesses, but it’s now become a concern for SMEs and failure to comply could result in some nasty fines. We’ll get to that in a moment, but first, let’s take a look at why auto-enrolment is being broadened to include smaller businesses. We’ll start by breaking this down into some bitesize answers:

Who is affected?

All businesses who employ at least one person. There are some extremely rare exceptions which require an official application.

Why is it happening?

Pensions are a good way to save for retirement and the Government wants more people to invest in them. It is hoped that more pensions will reduce the load on the welfare system.

What does it mean?

Your business, no matter how small, will need to establish a pension scheme.

When will it happen?

The roll out has begun but the deadline is April 2017. If you haven’t started thinking about it, act now.

How will it work?

You will need to upgrade your payroll capacity and implement a pension scheme, most likely with the help of someone who understands it.

Watch out for: If you don’t comply or miss the deadline your business will face hefty daily fines.

Why is auto-enrolment happening?

Pensions are important. They enable workers to save for their retirement and support themselves when they are no longer able to work. In the past, pensions have always been optional with workers choosing to opt in or out, but from 2018 onwards all employers will have to automatically enrol their workers in a pension scheme. In short, it’s going to become an obligation for people who work to save for their retirement, and businesses of all kinds will have to support that obligation in any way they can. In an ageing population, more and more burden is being placed on the welfare system to support people after retirement, so this is the Government’s way of alleviating pressure by encouraging (or obligating) workers to save for their retirement.

Auto-enrolment is being introduced in stages leading up to 2018 when it will become law for all businesses who employ staff. The largest businesses started first, quickly followed by medium sized businesses and now small businesses are approaching their ‘staging dates’.

As a small business, what do you need to do?

When you needed to act will have depended on the number of staff your employ, but most larger businesses have already been through the process and crunch time is fast approaching for small businesses. Even if you only employ a single member of staff, you could still be fined if you miss the so-called ‘staging date’. Fines are issued as follows:. Fines are issued as follows:

Between 50 – 249 employees – £2,500 per day

Between 5 – 49 employees – £500 per day

Between 1 – 4 employees – £50 per day

Currently, small businesses have until 1st April 2017 to fully comply, and it’s a good idea to get the ball rolling now if you haven’t already. Any staff that you employ in the UK who earn more than £10,000 per year and are over 22 years of age will need to be enrolled. The process of setting up auto-enrolment for your business and staff can be quite overwhelming, particularly if you’re a start up or traditionally haven’t had to think about it before. You’ll need to be fully aware of your staging date and what bracket your business falls into, and you’ll need to get in touch with the Pensions Regulator to get the ball rolling.

You’ll need to assess your staff by their age and salary to determine who will need to be auto-enrolled, and also start planning to make contributions which will start at around 1% but may increase over time. Naturally, all staff records will also need to be fully up to date, including their dates of birth, salaries, national insurance numbers, etc. Once that’s done, you can begin looking at some of the qualifying pension schemes on offer to select one that’s most appropriate and beneficial to you and your staff.

Of course, this can all prove to be a bit of a headache. Especially if you run a local business on your own and only employ a small team. You may have an accountant or financial advisor on hand who could offer advice and perhaps help out here and there, but they’re unlikely to offer you complete solution or take all of the pain away.

What next?

Thankfully, Next Level Business are on hand to help. We’re a next generation digital accountancy firm with a strong focus on helping small businesses with their payrolls and accounts in an open, honest and practical way. We can help your business tick the box for auto-enrolment and become fully compliant, from the first step to full on implementation. For more information and a free, no-obligation consultation, contact us today.

]]>http://www.nextlevelbusiness.co.uk/blog/auto-enrolment-for-small-business-what-you-need-to-know/feed/01266Autumn Statement 2016 – How Does It Affect You?http://www.nextlevelbusiness.co.uk/blog/autumn-statement-2016-affect/
http://www.nextlevelbusiness.co.uk/blog/autumn-statement-2016-affect/#respondWed, 23 Nov 2016 18:39:16 +0000http://www.nextlevelbusiness.co.uk/?p=1251All Change…. 2016 has been a year of political upheaval that not many predicted. First Brexit and the political fallout that ensued, now Trump. Some see it as the beginning of the end, some as liberation…what doesn’t change is the release of the Autumn statement. New CFO of UK PLC…. With Phillip Hammond now at the helm of the UK’s finances, his first Autumn statement was hotly anticipated. Why bother guessing…. And the run up to the statement release has not made it easy to predict. Following an initial stance that we would not be clearing the deficit by 2020,

2016 has been a year of political upheaval that not many predicted. First Brexit and the political fallout that ensued, now Trump. Some see it as the beginning of the end, some as liberation…what doesn’t change is the release of the Autumn statement.

New CFO of UK PLC….

With Phillip Hammond now at the helm of the UK’s finances, his first Autumn statement was hotly anticipated.

Why bother guessing….

And the run up to the statement release has not made it easy to predict. Following an initial stance that we would not be clearing the deficit by 2020, leading many to believe a loosening of the purse strings, the Chancellor announced just days before the release of the statement on the BBC that the debt was ‘eye-watering’ and that welfare and spending cuts ‘would go ahead’.

To the point & the impact to you is…..

But what was actually announced and what does it mean for you?

Well, we’ve been crunching the numbers since the announcements were made to work out what the impact is for you and your business and where possible (unlike others) we have tried to put the impact into pounds and pence.

Business Summary:

FLASH – most businesses will need to keep digital records and submit quarterly updates by 2018. Next Level Business clients are already digital and well positioned for this ‘making tax digital’ transformation so we will be focusing on advising you and making the most of your business whilst others run around trying to catch up. For everyone else, talk to your accountant now.

Positives

Lower Corporation Tax – from 20% to 19% starting 1 April 2017, 17% starting 1 April 2020. As low as 10% from 1 April 2017 for profits derived from patents.

Increase in Personal Allowance – for owner managers this useful increase from £11k this year to £11,500 next year from April 2017 and £12,500 by 2020 helps along with the increase in the higher rate threshold from £43,000 to £50,000 by 2020 will give more room for dividends at the lower tax rate which we support and will save £1,750 per director when maxing out the basic rate band compared to the current regime.

Extra R&D Funding – extra £2bn up to 2021 available for both businesses and universities and will apply to projects such as robotics, artificial intelligence and industrial bio technology. Also a commitment to review ways to build on the current R&D tax credit scheme which is a valuable relief for many small businesses.

Additional Export Support – doubling of support for expoting as the government looks to make it easier for British companies to trade abroad. This extends the export credit guarantee and increases the pre-approved currencies for which UK Export Finance offers support from 10 to 40. Clearly though knowing how to access this support is still critical.

Fuel Duty Frozen – confirmation that the fuel duty rise for next year will be cancelled for the seventh year in a row. Good news for businesses with high transport or fuel costs.

Green Transport – beneficial changes to the capital allowances regime on items such as electric cars and confirmation of support of these new technologies by excluding them from the changes to salary sacrifice schemes

Negatives

Increase National Living Wage – employers from April 2017 will need to ensure compliance wit the rise from £7.20 to £7.50 per hour as employment costs for small businesses increase again.

Increase in Employers National Insurance – in a small double hit for employers National Insurance thresholds have been made the same for employers as employees. We reckon the business cost will be £7.18 per employee per year.

Salary Sacrifice Restrictions – if it is not an ‘approved’ expense such as pensions, childcare, cycle to work and ultra low emission cars then its out. We think it was the bigger businesses who most of the gain from the old regime due to large benefits and HR teams so we think the impact on most small businesses won’t be too large however we don’t like the reduction in incentivisation flexibility generally.

New VAT Flat Rate – a new 16.5% rate comes into force 1 April 2017 for businesses with limited costs, such as consultants, contractors and professional service firms. That means you will generally keep 2.5% less than the previous 14% impacting those businesses straight in the pocket with a £50,000 turnover business being hit for around £1,200.

Increase in Insurance Premium Tax – this stealth tax went up from 10% to 12% from 1 June 2017 slightly increasing costs of running a business when you are appropriately covered. Cost c.£10-30 per annum for your average small business.

Personal Summary:

Positives

Increase in Personal Allowance – trying not to repeat outselves from above this useful increase from £11k this year to £11,500 next year from April 2017 and £12,500 by 2020 helps everyone with the increase in the higher rate tax threshold from £43,000 to £50,000 by 2020 this will cut the number of people falling into higher rate tax in our opinion and could save a current £50k p.a. employee around £1,400 per year in tax

Increase National Living Wage – low earners or those just starting out from April 2017 will see a rise from £7.20 to £7.50 per hour.

Tax-free Childcare – introduced in early 2017. This will provide savings of up to £2,000 per child.

Savings Bond – a new savings bond will be announced with an expected interest rate of 2.2% over 3 years and upto a £3,000 deposit.

Every little helps – in this bucket we have tax relief for those who buy and sell on a small scale (think car boot and ebay) from April 2017 the first £1,000 will not be taxable. Same story with the first £1,00 of property income such as letting your room via a website, airbnb anyone?

Renters Relief – a ban on agents directly charging renters upfront fees however we predict this could find its way back to renters with higher rents in the medium term but we don’t mind hurting estate agents short term!

Negatives

Employment Benefits – these may be cut or come under pressure as the removal of salary sacrifice on almost everything but pension, childcare, cycle to work and ultra low emission cars.

Increase in Insurance Premium Tax – this stealth tax went up from 10% to 12% from 1 June 2017 slightly increasing costs of insuring cars and homes for the majority. An average single home single car insurance example could cost around £20 extra a year.

What next…..

More detail with unfold in due course and our mobile app will get updated with the latest news, rates and calculators over the coming days for those who like to punch in the figures and see the impact.

We still think the Limited company status and benefits remain strong for small businesses of all shapes and sizes if well setup and it is now more important then ever to plan. Contact us if you want to have a review or tax planning session.

]]>http://www.nextlevelbusiness.co.uk/blog/autumn-statement-2016-affect/feed/01251Brexit – 10 Top Tips For Businesses Following UK Referendumhttp://www.nextlevelbusiness.co.uk/blog/brexit-10-top-tips-businesses-following-uk-referendum/
http://www.nextlevelbusiness.co.uk/blog/brexit-10-top-tips-businesses-following-uk-referendum/#respondMon, 27 Jun 2016 17:27:42 +0000http://www.nextlevelbusiness.co.uk/?p=941You really can’t escape ‘Brexit’ in the news right now. At the moment, there is a lot of speculation about what might happen next, but not a lot of concrete answers. Certainly we’ll learn more about the implications in the coming weeks and months but for now, please read on for our advice in the short term. Change…but not as fast as all that: It is unlikely that any major changes will happen quickly. The process of exiting the EU is expected to take around two years, and we may not start even start doing so for many months yet.

At the moment, there is a lot of speculation about what might happen next, but not a lot of concrete answers. Certainly we’ll learn more about the implications in the coming weeks and months but for now, please read on for our advice in the short term.

Change…but not as fast as all that:

It is unlikely that any major changes will happen quickly. The process of exiting the EU is expected to take around two years, and we may not start even start doing so for many months yet. Some change may happen sooner, but there is certainly a good runway of time to consider the longer term issues that may arise.

Our view is that much of the headlines will focus on the shorter term ‘reaction’ changes, rather than the longer term fundamentals which were strong prior to Brexit…This is more than can be said of other EU countries! So, we are bullish about the UK’s (and small businesses’ ability in particular) to weather the storm, and will even take advantage of the opportunities that will arise with some careful thought, advice and planning.

What we know so far:

• The referendum result has sparked a surge of political instability in the UK – this will take time to work through

• A departure process will last years and has not yet been formally triggered

• The Bank of England stepped in quickly with reassurance it was ready to act

Our 10 practical top tips:

1. Build financial headroom – the larger your financial headroom, the more insulated you will be from any potential shocks as they come along. We like to recommend having 3 months of costs available in cash or facilities should you need it. With overdraft arrangement fees minimal, now might be a good time to arrange one with your bank, whether or not you need it. Likewise pre-approval for loans can be advantageous, in that you can call on them quickly should you need to. Other lines of credit such as credit cards can be useful to absorb any short term impacts and worth considering even if they end up not being used. Of course even retaining a little bit more cash in the business can help build reserves in the short term.

2. Get a good deal on foreign currencies – exchange rates have varied by around 10% since Brexit and as such it has never been more important to get a good deal when dealing with foreign currencies, both in the rate and charges that apply. With banks often charging fees and giving poor exchange rates, we find you can save up to 90% by using new online providers such as Transferwise HERE or HiFX HERE for both business and personal transfers.

3. Get paid faster – no matter what line of business you are in, getting paid faster is always a good idea. We offer all our clients the ability to raise online invoices, where you can send via email and track who has opened them etc. Studies have shown implementing this can remove a third of the time it normally takes to get paid. Once you have done this, why not add a payment facility directly to the invoice. One click and you can be paid using debit or credit card from almost any country. Direct Debits are even better for across the UK and Europe too – get in touch to talk to us about these services, which we can have set up for you in under 48 hours.

4. Track your debtors – other companies might be looking to conserve cash and as such delay paying your invoice. Ensure you have full visibility of who owes what and who has paid by using our bolt on digital credit control services. These can track, update and chase your outstanding invoices for you ensuring you get paid when you are due. Ask us about this service.

5. Selling opportunities – the pound has weakened against most currencies and therefore if you sell your goods and services in other currencies you can now get more pounds for that. Useful to improve your margins or invest that difference to win those additional sales. Talk to us about how we can help you deal with multiple currencies with ease.

6. Buying opportunities – a weak Pound makes goods and services from overseas, or even those just imported into the UK and sold in pounds, more expensive. There might be opportunity to review whether you can buy more locally as an alternative and offset any potential cost increases that way. Failing that, asking for discounts or extended credit terms from existing suppliers can yield surprising results.

7. Don’t get distracted – chances are a lot of what is happening is largely out of your control and even the impacts are only potentials rather than actuals at this stage. It will be important to not get too distracted and ensure your business runs at its best over the coming months. Keep calm and carry on!

8. HMRC / Tax – there is no change to the tax you owe or pay at this stage and therefore no point in calling HMRC to ask the question or enquire, as they won’t know any more than you at this point. What is important is that you have access to the right information and can change as required….and our next point covers this one!

9. Advisor – having access to a good advisor who can deal quickly with any changes as and when they arise is always sensible. If you have not got one we can thoroughly recommend finding one. The best ones will be able to see how your business is performing in near real time and advise any actions as appropriate. Traditional annual accounting practices and models simply can’t keep up with fast change so make sure you find one more suited to current times.

10. Cash is ‘king’ – finally, as we like to tell almost anyone that listens cash is still king, and the most important thing for a business. You can afford to be unprofitable many times, but only run out of cash once. Making sure you turn your efforts into cash as quickly and productively as possible, whilst maintaining sufficient reserves to deal with any bumps as they come along, gives you the best chance of success and the ability to capitalise on any opportunities as they arise.

]]>http://www.nextlevelbusiness.co.uk/blog/brexit-10-top-tips-businesses-following-uk-referendum/feed/0941Next Level Business is now a Xero Gold Partnerhttp://www.nextlevelbusiness.co.uk/blog/next-level-business-now-xero-gold-partner/
http://www.nextlevelbusiness.co.uk/blog/next-level-business-now-xero-gold-partner/#respondWed, 15 Jun 2016 11:58:38 +0000http://www.nextlevelbusiness.co.uk/?p=936After months of hard and valuable work, Next Level Business have been awarded Xero Gold Partner status by online accounting software partner Xero. Next Level Business have been awarded this at an unprecedented speed from Xero, signifying the great work we have been doing for our clients. Not only are we growing quickly but we’re in the top 5% of new firms using Xero for onboarding new clients. Paul Layte, CEO of Next Level Business had this to say ‘What an achievement. We’re all really proud of the work we have been doing, and although we never aimed to be

]]>After months of hard and valuable work, Next Level Business have been awarded Xero Gold Partner status by online accounting software partner Xero.

Next Level Business have been awarded this at an unprecedented speed from Xero, signifying the great work we have been doing for our clients. Not only are we growing quickly but we’re in the top 5% of new firms using Xero for onboarding new clients.

Paul Layte, CEO of Next Level Business had this to say ‘What an achievement. We’re all really proud of the work we have been doing, and although we never aimed to be a Xero Gold Partner in the short term it’s a fantastic reward for all the hard work we’ve been putting in to help service our clients.

What our existing clients recognise and what this award shows is that we are moving forward in our mission to help UK SME businesses be more successful.

Xero is a great online accounting platform but also so much more for small businesses. We have integrated Xero in to our service packages and believe that with our deep understanding of business and the data shared between us and our clients we can help them make smart decisions to make their business more successful.

How does this award benefit you and your business?

– Grow with you. Xero allows us to grow the service we offer with your business from the simple to the complex. What the Gold Partner award shows is that here at Next Level Business we can operate on both levels. In fact, we go one further, where we can show value to your business we will. For example, we provide management reporting to your business based on the metrics you measure your business’ performance on. We call this measuring what matters. We can show you what areas you need to focus on to maximise profitability, and compare this to previous months to make sure you’re heading in the right direction.

– Going digital. Don’t get stuck in the past and with paper. We can help to train your team to maximise Xero’s use for your business. Do you have an internal bookkeeper? We can work with them to maximise their skills using the software; reducing mistakes, increasing efficiency, and ultimately minimising your accountancy costs.

– Smart decisions need instant information. What the Xero Gold Partner status shows is our capability to manipulate the platform to show the analytics critical to business performance. As a result, we can identify any trends that will lead to significant problems for your business early, and help put actions in place to solve them.

– And on a final note…our Xero Gold Partner status should show you that you’re in safe hands with us. We got to this point because we look after our clients, we won’t leave you stranded when you need some vital information from us, nor will we sit back and be the ‘yes’ man when we’ve got knowledge that tells us differently. We work for you and your business, helping you to move forward and be more successful.

]]>http://www.nextlevelbusiness.co.uk/blog/next-level-business-now-xero-gold-partner/feed/0936PSC Register (People with Significant Control) – NEW LEGISLATIONhttp://www.nextlevelbusiness.co.uk/blog/psc-register-new-legislation-overview/
http://www.nextlevelbusiness.co.uk/blog/psc-register-new-legislation-overview/#respondTue, 29 Mar 2016 09:21:47 +0000http://www.nextlevelbusiness.co.uk/?p=771Coming in to force on April 6th 2016, the UK government now requires each company (no matter how small) to keep a register of the people that has significant control over the organisations activities (known as a PSC register). Non compliance can attract a penalty and it also a criminal offence. This article aims to summarise this new requirement, providing an overview of: – What is the PSC Register – Why the PSC Register is being introduced, – Who the PSC Register requirement applies to, – What must an affected company do – What is a person with significant control

]]>Coming in to force on April 6th 2016, the UK government now requires each company (no matter how small) to keep a register of the people that has significant control over the organisations activities (known as a PSC register). Non compliance can attract a penalty and it also a criminal offence.

This article aims to summarise this new requirement, providing an overview of:
– What is the PSC Register
– Why the PSC Register is being introduced,
– Who the PSC Register requirement applies to,
– What must an affected company do
– What is a person with significant control
– The timeline for adherence to the new legislation
– A solution to the PSC Register legislation

What is this new legislation?

The legislation put in place by government requires companies registered in the UK to file a Register of People with Significant Control (PSC Register) with Companies House.

The legislation comes in to force on the 6th April 2016 and from here on in, all companies must hold a PSC Register.

As per other registers that are filed with Companies House, the PSC Register will be available for inspection by the public.

Why is the PSC Register legislation being introduced?

In short a group of nations including the UK wanted to bring more transparency, trust and accountability and identify who actually ‘pulls the strings’ in companies. It is a problem that only really impacts a small proportion of business but for which a blanket solution was required in order to tackle the problem.

Our view therefore is that this is a big business piece of legislation that impacts even the smallest companies and one that is not well known or understood.

The primary aim of the legislation, and the main reason it is being introduced, is to tackle the complex ownership structures of larger organisations. This focus hasn’t been replicated within the legislation itself, and the PSC Register legislation applies to practically all UK private companies.

The PSC Register is required by both existing companies (operating before April 6th 2016) and new companies formed from this date forward.

The PSC Register does not apply to:

– Sole traders
– Limited partnerships (LPs)
– Charitable Incorporated Organisations (CIOs)
– Companies that are subject to Chapter 5 of the FCA Disclosure and Transparency Rules
– Companies with voting shares admitted to trading on a regulated market in the UK
– Companies with voting shares admitted to trading in another European Economic Area state
– Companies with voting shares admitted to trading on certain specified markets in Switzerland, the USA, Japan and Israel
– Overseas entities operating but not registered as a company in the UK

What must an affected company do?

There are 6 steps to having a fully compliant PSC Register

1. Take steps to identify whether there are people with significant control over the company
2. Make contact with those individuals, or others who may know them, to confirm whether they meet the specific control conditions.
3. If they meet the conditions, confirm relevant information to include in the register.
4. Create the Register of People with Significant Control and input the details received from all PSCs. In some certain circumstances, other information may be required.
5. Confirm the information in the companies next Confirmation Statement (which replaces the annual return)
6. Keep all information on PSCs up to date, update when there is a new PSC, and remove where someone stops meeting the control conditions.

So, what is a Person with Significant Control?

As an overview, a person with significant control (a PSC) is someone who owns or controls a company. Someone who can determine an organisations direction and activities.

Specifically, a PSC is someone who meets at least 1 of the following 5 conditions:

They,
– Own more than 25% of the company’s shares
– Hold more than 25% of the company’s voting rights
– Have the power to appoint or remove the majority of the company’s board
– Have the right to, or actually, exercise significant influence or control over the company (there is detailed statutory guidance explaining the scope of “significant influence or control”)
– Have the right to, or actually, exercise significant influence or control over a trust or a firm that is not a legal entity which itself satisfies any of the first four conditions.

Different conditions, although based on the same principles, apply to LLPs.

For companies limited by guarantee, which generally do not have shares, the same rules apply although in a slightly amended form.

With only a few specific exceptions, a person with significant control (a PSC) is an individual. A PSC must be entered on to the register whether nominated directly or indirectly, but only once their details have been verified.

While legal entities, like companies, are not classed as PSCs they may be classed as relevant legal entities (RLEs) and would need to have their details recorded on the PSC Register. If a relevant legal entity would meet any of the above conditions if it was an individual, it should be registered.

And what is the timeline for adherence to the legislation?

The requirement to maintain a PSC Register and report details contained in it is being introduced as part of a wider range of changes:

6 April 2016
Every affected company must start to keep a PSC Register.

Existing companies must undertake reasonable efforts to identify and verify their PSCs, verifying PSC information and recording this on the register.

The register must be maintained when new people become PSCs, existing PSCs change their details, or existing PSCs cease to be a PSC.

30 June 2016
PSC information must be sent annually to Companies House under the Confirmation Statement. When the next return is due after this date, the PSC Register will need to be included.

New companies formed from this date must include a statement of initial significant control, detailing the people with significant control when the company is formed.

It seems a lot of work for the little guys who are busy trying to run and grow their business?

At Next Level Business, our view is that whilst we can see corporate transparency is sometimes an issue for larger companies and those with complex shareholding and ownership structures your ‘average’ small company in the UK has not suffered a transparency issue as they are often controlled directly by a single or small group of shareholders.

By the governments own estimate the cost to UK business will be £85.9m each year. With low awareness among small business and a traditional accounting model based on an annual cycle we predict a significant number of companies to be non-compliant and facing penalty or risk criminal offence.

So what is the solution?

As a digital service provider (both accounting and company secretarial) we would recommend creating and maintaining this new register digitally so that it is available upon request for inspection, easily updated when things change, and also available to submit annually to Companies House.

If you would like us to complete this for you, or you have any queries, please get in touch.

]]>http://www.nextlevelbusiness.co.uk/blog/psc-register-new-legislation-overview/feed/0771Budget 2016 summary – largely positive for small businesshttp://www.nextlevelbusiness.co.uk/blog/budget-2016-summary-small-business/
http://www.nextlevelbusiness.co.uk/blog/budget-2016-summary-small-business/#respondThu, 17 Mar 2016 16:29:25 +0000http://www.nextlevelbusiness.co.uk/?p=765On the 16th of March the government announced the 2016 Budget. In this summary we have focused on the main issues that affect small businesses. Full Budget – you can get it from HMRC here. Timing – some of these announcements come into effect now or shortly but many of them are for the year after or beyond. Largely a positive budget for small business. Increasing the personal allowance and higher tax band and also on decreasing corporation tax rates is welcome and the simplification of national insurance for the self-employed is long overdue. We are updating our free mobile accounting app

Timing – some of these announcements come into effect now or shortly but many of them are for the year after or beyond.

Largely a positive budget for small business.

Increasing the personal allowance and higher tax band and also on decreasing corporation tax rates is welcome and the simplification of national insurance for the self-employed is long overdue.

We are updating our free mobile accounting app with all this information just as soon as we can with a lot already done. If you have not already got it see how here.

Income tax

The personal allowance for 16/17 (6th April 2016 to 5th April 2017) is set at £11,000, this will now increase to £11,500 for 17/18, whilst the higher tax band, which is set at £43,000 for 16/17 will increase to £45,000 for 17/18.

Class 2 National Insurance (Self-Employed)

It’s a while off, but from 2018 Class 2 NI for the self-employed will be no more so if you’re self-employed you should only have one category of national insurance to worry about (currently known as Class 4). This is a much needed simplification of the national insurance system for the self-employed.

Directors Loans

The tax paid on directors loan balances that remain unpaid within 9 months of the end of an accounting year, known as s455 tax, will increase from 25% to 32.5% for any loans that are made from 6th April 2016.

Corporation tax

Corporation tax will drop from the current rate of 20% to 19% from April 2017 (this was already known). However corporation tax was expected to drop again to 18% by 2020 but this has now been reduced further down to 17%. This, along with the increased personal allowance and higher tax band should help mitigate the extra tax payable due to the changes to dividend taxation which start from the 6th April 2016

Lifetime ISA

This is an interesting one, it doesn’t come in for a year, but from April 2017 there will be a new savings structure called the ‘Lifetime ISA’. If you’re under 40 you’ll be able to open a Lifetime ISA and save up to £4,000 per tax year and you will get a 25% bonus from the government. So for every £4 you pay into the Lifetime ISA the government will put £1 in. You will be able to pay into the ISA and get the government bonus 25% until you’re 50. There are various rules about when you can withdraw the cash and potential tax consequences. HMRC have a fact sheet about the Lifetime ISA here.

The general overall ISA limit (total for all your ISAs) will also be increasing from April 2017 – from £15,240 to £20,000.

Capital Gains Tax

This was somewhat un-expected – from 6th April 2016 capital gains tax rates are reducing. The higher rate will reduce from 28% to 20% and the basic rate will reduce from 18% to 10%. There will be various rules and details about this to come out, one of them being that these new lower rates do not apply to residential property (i.e. buy-to-lets) which will continue to be taxed at current capital gains tax rates.

Public Sector Personal Service Companies and IR35

If you work through your own personal service company and contract with public sector clients this could have quite an effect on you, although the details are still to come. From April 2017 if you work through your own company in the public sector you will not be able to personally decide if IR35 (the intermediaries legislation) applies. It will be the agency or the public sector employer that has to decide if IR35 applies or not, and if they deem that you are caught by IR35 it will be them that have to deduct the applicable tax and national insurance.

This appears to be a first step by HMRC in their attempt to reform IR35.

HMRC have also announced that there will be a new online tool you can use to test your IR35 status, although previous attempts at this have not been very successful!

VAT registration threshold

The VAT registration threshold that is currently £82,000 will increase to £83,000 from 1 April 2016.

Digital accounting records– we have you covered

The Government announced it wants all businesses to send HMRC a summary of their accounting records every quarter. This data will update the “digital tax account” for that business held by HMRC, and will enable the taxpayer to see what tax they should be paying much earlier than would be the case when submitting an annual tax return.

To enable this to become a reality, every business, and every landlord who receives more than £10,000 of income, will have to maintain their accounts using software that can communicate directly with HMRC. That excludes electronic spreadsheets, and of-course paper based accounting records.

The small businesses need to convert to digital accounting within two years, as businesses with turnover below VAT threshold will be required to submit quarterly updates from April 2018.

We are specialist in digital and our clients already use the latest software putting us in a great position already for this change. Other businesses and accountants will quite frankly have to change, catch up or call us.

]]>http://www.nextlevelbusiness.co.uk/blog/budget-2016-summary-small-business/feed/0765Digital – the future of accounting event : 15th March, 6pm – 8.30pm, Birminghamhttp://www.nextlevelbusiness.co.uk/blog/digital-the-future-of-accounting/
http://www.nextlevelbusiness.co.uk/blog/digital-the-future-of-accounting/#respondThu, 10 Mar 2016 16:09:05 +0000http://www.nextlevelbusiness.co.uk/?p=747Next Tuesday evening I will be hosting a session at the BPP Birmingham in association with the Association of Chartered Certified Accountants (ACCA) on the subject of the future of accounting. I will be covering: Digital and the cloud changes everything What does the customer want? The future of accounting in business and practice How to become a successful digital accountant This session is open to all, whether you are a start up, small or large business, and will be of interest to you if you are considering moving your business from a traditional accountant to a digital accountant where

]]>Next Tuesday evening I will be hosting a session at the BPP Birmingham in association with the Association of Chartered Certified Accountants (ACCA) on the subject of the future of accounting. I will be covering:

Digital and the cloud changes everything

What does the customer want?

The future of accounting in business and practice

How to become a successful digital accountant

This session is open to all, whether you are a start up, small or large business, and will be of interest to you if you are considering moving your business from a traditional accountant to a digital accountant where your finances are managed primarily online. It will also be of particular interest to accountants and businesses of a similar nature.